A friend of mine was considering buying a used luxury vehicle (3-4 years old), and while it’s not a car I would ever buy, it fits his personality.
However, he is thinking of now buying new because,
“The interest rate on a new car is a lot lower, 1.9% vs 4 or 5%”
Now, my friend is one of the smartest people I know…but this is just terrible logic, right?
On a $40,000 loan, a 2 or 3% rate difference isn’t going to make a dent in even just the first year of depreciation on a new car.
I know if I ask for advice, everyone is going to scream, “Stupid! Go for the used car”….
Are there ever any reasons to buy a new car? (I can think of a few…mostly not financial though!